Cineworld H1 profits rise but matching Skyfall may be tough

15th Aug 2013 07:28

Cinema operator Cineworld unveiled higher first half profit and dividends, but it warned it would be tough to match the success of last year's Bond blockbuster Skyfall.Cineworld said pre-tax profit in the six months to June 27th rose 24.1% to £16.5m while revenue lifted about 22% to £201.6m. It increased the interim dividend by 7.9% to 4.1p.Chief Executive Stephen Wiener said the "solid" results and trading performance, together with lower net debt since the end of 2012, meant Cineworld was in a sound financial position to fund continued growth.The group has a strong second-half film line-up including key titles Despicable Me 2, Monsters University and The Wolverine.It may be easier to compete with last year's third quarter performance due to the impact of the London Olympics a year ago, which caused many people to stay at home, Wiener said.But the final quarter of the year may be tougher due to the success of the latest 007 movie Skyfall last year.Wiener added: "The strength of the film line-up in the second half, coupled with our solid first half performance, underpins our confidence that we are on track with our plans for the full year."Group adjusted profit before tax rose 32.6% to £17.9m. Cineworld Cinemas' revenue rose 10.5% driven by increased box office receipts, which increased 10.5% to £131m. Revenue at recently acquired speciality cinema chain Picturehouse rose 12.9%.The group said it had received two million new registrations for its MyCineworld scheme since it removed online booking fees in March 2012, taking the number of members to over three million.PW